Assume the following data for a group of risky portfolios. The risk-free rate of return is 4%. Investors can borrow and lend at the risk-free rate. Portfolio ROR (%) St. Dev. (%) Q 15 23 W 14 18 G 12 17 B 10 13 H 20 30 a) Which of the risky portfolios is likely to be the tangency portfolio? Why? b) Given your answer to (a), derive the equation of risk-return relations that reflects the mutual fund separation theorem. c) If an investor desires to achieve a rate of return of 18%, what percent should s/he invest in the risk-free asset and in the risky portfolio you determined to be tangency portfolio? What is the risk the investor faces?

Assume the following data for a group of risky portfolios. The risk-free rate of return is 4%. Investors can borrow and lend at the risk-free rate. a) Which of the risky portfolios is likely to be the tangency portfolio? Why? b) Given your answer to (a), derive the equation of risk-return relations that reflects the mutual fund separation theorem. c) If an investor desires to achieve a rate of return of 18%, what percent should s/ he invest in the risk-free asset and in the risky portfolio you determined to be tangency portfolio? What is the risk the investor faces? Note-Please solve in excel as need to submit in excel format